Unit 2: Personal Finance

When the market is down sharply for several months or years in a row, the market is often referred to as a

Which of the following would be considered a fixed cost in a monthly budget?

The feature of money that allows purchasing power to be saved until it is needed.

A savings plan set up by an employer that allows employees to contribute a fixed amount of income to their retirement

When the market is strong with prices moving up for several months or years in a row, the market is known as

Refers to the state of the economy (national or local) and the availability of money.

Investment run by professionals that contains multiple stocks

This is the cost of borrowing money.

All of the following are characteristics of successful money except

Which of the following investments would most likely carry the most risk?

Money by government decree is known as

Refers to the lender's assessment of the person's experience repaying debt.

Investors can purchase securities or _____which represent ownership shares in corporations.

Savings Accounts generally offer extremely low interest rates.

Refers to the borrower's net worth or wealth.

There is never a scenario where compound interest can negatively impact you. It can only be beneficial.

Product offered by the bank that has a better interst rate than a savings but you can't access it for a certain time.

A car loan would be considered secured credit while a credit card is unsecured credit.

Considered one of the oldest stock exchanges in the U.S.

A place where buyers and sellers can meet to trade securities is called a _______

This type of scam lures you in with promises of money, stardom and persuades you that you have "the look"

This is a commodity that is accepted by general consent as a medium of exchange.

Refers to an asset pledged against a loan to give the lender more security that the loan will be repaid.

Municipal Bonds are issued by state/local governments to finance highways, state buildings, etc.

The first time a private company can go public by sale of its stock to the general public.

You would likely choose this stock for its ability to increase in value

The practice of holding a large number of stocks so that increases in some offset declines in others.

This score lets lenders know the risk involved in lending to an individual.

The _____ uses 30 stocks as indicators of the stock market's performance.